Silver showed some downward momentum during today’s trading, as the stochastic oscillator provides negative signals as the price is moving below the 50 level on the 4-hour chart. Currently, silver is eyeing to surpass the aforesaid 50 level to extend its short-term rally.

Scenario 1:

Meanwhile, silver is trading near the daily pivot point at $31.80, as the price is aiming to stay above this point to resume its key bullish trend, supported by a bullish flag continuation pattern. A sustained move above the upper line of the flag pattern could lead to further gains towards $32.30. If the price manages to stabilize above this level, it may reach $32.80.

Scenario 2:

If silver fails to cling above the daily pivot point at $31.80, this could lead to a loss of positive momentum then a retest to the first support level at $31.30, which coincides with the lower line of the bullish flag pattern. If the price drops below the lower line of the flag pattern, then this will invalidate this pattern and would prompt silver to dump to $30.80.